• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Nigeria: Higher food prices, FX push inflation to 18-yr high

2 years ago
in Business, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
74
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria: Higher food prices, FX push inflation to 18-yr high

Nigeria’s headline inflation rate quickened to a new 18-year high of 25.80 percent in August 2023 owing to higher food prices and foreign exchange.

According to the latest Consumer Price Index report by National Bureau Statistics (NBS) on Friday, the inflation rate rose for the eighth straight month to 25.80 percent from 24.08 percent in the previous month.

A breakdown of the data shows that food and non-alcoholic beverages contributed the most (13.36 percent) followed by housing water, electricity, gas and other fuel (4.32 percent), clothing and footwear (1.97 percent), transport (1.68 percent), furnishings and household equipment and maintenance (1.30 percent) and education (1.02 percent).

Others are health (0.78 percent), miscellaneous goods and services (0.43 percent), restaurants and hotels (0.31 percent), alcoholic beverages, tobacco and kola (0.28 percent), recreation and culture (0.18 percent) and communication (0.18 percent).

Razia Khan, chief economist of Standard Chartered Bank of Nigeria, said much of the pre-existing pressure on the inflation figure came from Nigeria’s monetary policy stance in the months that preceded this outcome, and the continued naira depreciation on the parallel market.

“The inflation data in our view reflects only in part the lifting of the subsidy, and there is only one tried and tested way to end the depreciation on the parallel market: tighten monetary policy and allow price discovery on the official FX market. Nigeria’s inflation rate speaks to the urgency of doing so,” Khan said.

RelatedPosts

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

The World Bank said in June that inflation pushed an estimated four million more Nigerians into poverty in the first five months of this year.

Analysts at CSL Stockbrokers said in a recent note that since February 2022, Nigeria’s consumer price index has stayed elevated due to several factors such as food shortages, increases in energy cost, multiple currency devaluations, trade restrictions and a few others.

The NBS report also revealed that food inflation, which constitutes 50 percent of the inflation rate, rose to 29.34 percent in August, the highest in 18 years from 26.98 percent in July.

The food inflation rate was also 6.22 percentage points higher compared to the rate recorded in August last year (23.12 percent).

“The rise in the food inflation on a year-on-year basis was caused by increases in prices of oil and fat, bread and cereals, fish, fruit, meat, vegetables and potatoes, yam and other tubers, milk, cheese and eggs,” the NBS said.

Unsurprisingly, food prices increased on the underlying factors such as the pass-through effect of elevated Petrol Motor Spirit prices on food prices, higher input costs and conflicts in the Northern region of the country – remain intact, according to analysts at Cordros Securities.

“Coupled with the above, the closure of the Niger Republic border in early August exerted fresh pressures on the food basket amid the lean season in food-producing states. Consequently, pressures were significant in the farm produce and processed food sub-baskets,” they said in a note on Friday.

Core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 21.15 percent in August on a year-on-year basis, up by 4.03 percent when compared to the 17.12 percent recorded in the same period of 2022.

The Federal Government reforms such as the removal of petrol subsidy and naira devaluation, implemented in the second quarter of the year, surged the cost of living of cash-strapped consumers.

The removal of the fuel subsidy tripled the petrol price to N617 from N184, causing public transportation providers such as buses, tricycles and motorcycles to raise transportation fares.

On June 14, 2023, the Central Bank of Nigeria merged all foreign exchange markets into the Investors and Exporters window and reintroduced the willing buyer, willing seller model.

As a result, the official exchange rate increased from N463.38/$ to N747.8/$ as of September 4.

However, the reform has only widened the spread between the official and parallel market rates, as the naira has depreciated by 61.4 percent against the dollar since the float.

On September 4, the naira exchanged for 747.87 per dollar at the I&E window, up from 463.38/$ on June 13. Meanwhile, at the parallel market, the naira depreciated by 20.1 percent to 917/$ on September 4 from 762/$ in June.

“Prominent among these factors are naira depreciation, higher logistics costs, money supply growth and cost-push factors. In July and August, the naira swung between N775/$ and N955/$ at the parallel market,” analysts at Financial Derivatives Company Limited, led by economist Bismarck Rewane, said in their latest economic bulletin.

They added that the pass-through effect of a weak currency on domestic prices remains potent. “Notable among the commodities that have high import contents are wheat, sugar, rice and dairy products.”

Source: businessdayng
Via: norvanreports
Tags: FX push inflation to 18-yr highinflationNigeria: Higher food prices
No Result
View All Result

Highlights

OPEC+ Nears Decision Point on Next Oil Output Hike

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Trending

Business

Multichoice Rebuffs Minister’s Claim On DSTV Price Cuts, Cites Market Conditions

August 3, 2025

Multichoice Rebuffs Minister's Claim On DSTV Price Cuts, Cites Market Conditions MultiChoice Ghana has pushed back against...

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.